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Canaan's Q2 Loss Narrows to $2.4M From Q1 on 160% Revenue Increase

Canaan's Q2 Loss Narrows to $2.4M From Q1 on 160% Revenue Increase

Canaan's Q2 Loss Narrows to $2.4M From Q1 on 160% Revenue Increase

Canaan shares are down 23% in August.

Canaan shares are down 23% in August.

Canaan shares are down 23% in August.

AccessTimeIconAug 31, 2020, 8:29 PM
Updated Aug 19, 2021, 4:03 AM

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Mining equipment manufacturer Canaan Creative reported a 2Q net loss of $2.38 million, or 10 cents a share, less than half the size of Q1's $5.64 million loss, or 24 cents

  • Revenue rose more than 160% to $25.2 million from $9.6 million in Q1.
  • The largest expenses during Q2 were general and administrative, accounting for $4.19 million, or 48% of the firm’s $8.8 million quarterly operating expenses.
  • Shares of the company, currently worth $314 million, jumped nearly 15% during morning hours to set a daily high of $2.29 on Monday. Overall August, however, shares have dropped 23 percent.
  • On Friday, Canaan closed only its second weekly gain during the third quarter, closing less than 1% above its open on Aug. 24. In mid June, Canaan shares plummeted to all-time lows of $1.76 one month after the third bitcoin halving.
  • Monday’s filing also shows that as of June 30, Canaan had cash and cash equivalents worth $22.2 million, down 40% from $37.3 million at the end of Q1. The company cited an increase in short-term investments for the lower cash on hand.
  • Canaan declined to issue guidance for the coming quarter due to the uncertainty caused by the economic downturn.
  • The Hangzhou, China-based company has only traded on the Nasdaq since November 2019 after abandoning plans for an initial public offering on the Hong Kong Stock Exchange. Since its listing, Canaan shares have dropped nearly 85 percent.

A replay of the company's conference call will be accessible through Sept. 8 by dialing the following numbers:

International: +61-2-8199-0299
United States: +1-646-254-3697
Hong Kong, China: +852-3051-2780
Replay PIN: 3977618

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